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Step 1 – total the servicing costs
1,050 + 1,100 + 950 + 1,025 + 875 = £5,000 per week

Step 2 – calculate the monthly cost
5,000 x 4 = £20,000 per month

Step 3 – calculate the average monthly cost
£20,000 / 5 = £4,000 per month

Step 4 – calculate the average annual cost
4,000 x 12 = £48,000

Thus the correct answer is (E), £48,000

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Step 1 - For the Glasgow plant, calculate the total costs
195 + 875 + 300 + 189 + 720 + 425 = 2,704

Step 2 - For the Glasgow plant, calculate each cost as a % of the total cost
Insurance = 100% x 195/2,704 = 7%
Servicing = 100% x 875/2,704 = 32%
Rent = 100% x 300/2,704 = 11%
Utilities = 100% x 189/2,704 = 7%
Administration = 100% x 720/2,704 = 27%
Misc = 100% x 425/2,704 = 16%

Tip: to save time, you can stop after you’ve calculated 7% for Insurance and just scan across the row to see if any other costs are close to £195. You will see that Utilities are.

Thus the correct answer is (E), Insurance and Utilities

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Calculate the average for each maintenance cost:

Insurance = 192.2

Servicing = 1,000
Rent = 295
Utilities = 185.8
Administration = 589
Misc = 450

Thus the correct answer is (A), Servicing, Administration, Misc., Rent, Insurance, Utilities

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The information that we need is shown in the graph.
Calculate the Shares: Bonds ratios for each equity fund

	Bonds	Shares
UK	20	40
US	15	55
European	7	70
Far Eastern	13	30
Emerging Markets	30	50

The UK fund has exactly double the number of Shares compared to Bonds. Only the Emerging Markets has less than double the number of Shares compared to Bonds.

Thus the correct answer is (C) Emerging Markets

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Tip: Note that just from looking at the graph and table we know the overall US fund is
smaller than the UK fund and the smallest fraction within the US find (10% to Derivatives)
is not larger than the smallest fraction within the UK fund. So we can instantly say the
smallest fraction is Derivatives in the US fund. As it happens there is only one multiple
choice with this as an option so we know (E) is the correct answer.
In full, the solution is as follows. The information that we need is shown in both the graph
and the table.

Calculate the value of each component of each equity fund, using this formula:
Component value = Total value x Equity fund component %
UK Fund (Cash) = 55.6 x 10% = 5.56 (£million)

See table below for other component values:

	Component value (£million)
	Cash	Bonds	Derivatives	Shares
UK	5.56	11.12	16.68	22.24
US	4.86	3.65	2.43	13.37

Thus the correct answer is (E), lowest is US Fund (Derivatives); highest is UK Fund (Shares)